Dialog Axiata PLC | Annual Report 2010 D ia lo g A x ia ta P L C | A ...

The BAC conducts a review of the effectiveness of the Group’s system of internal controlsand reports its findings to the Board. The review covers all material controls, includingfinancial, operational and compliance controls and risk management systems.Risk Management, Compliance and ControlThe Board has established policies on risk oversight and management that examines theroles and respective accountabilities of the Board, BAC, management and any internalaudit function.The Group has established and implemented an Enterprise Risk Management system foridentifying, assessing, monitoring and managing material risk throughout the organisation,which includes:• oversight of the risk management system;• risk profile - a description of the material risks facing the Company includingfinancial and non-financial matters;• risk management;• compliance and control;• assessment of effectiveness - mechanism to review, at least annually, theeffectiveness of the Company’s implementation of that system and update therisk profile of the Company.Internal AuditInternal audits are conducted by the Group Internal Audit Division which is independent ofmanagement. The Internal Auditor has access to management and the authority to seekinformation, records, properties and personnel relevant to the subject of audit/review. Oncean audit/review is completed, a report is submitted to the BAC.The BAC oversees the scope of the internal audit and has access to the internal auditwithout the presence of management.In order to ensure independence, objectivity and enhance performance of the internal auditfunction, a direct reporting line has been created from the internal audit function to theBAC. The BAC recommends to the Board the appointment and dismissal of the Group ChiefInternal Auditor. The activities of the Group’s internal audit are detailed in the BAC Reporton pages 48 and 49.Corporate GovernanceDialog Axiata PLC| Annual Report 201043